BAE Systems Australia and California-based aviation technology firm Skyryse have signed a Memorandum of Understanding (MoU) to integrate their respective flight control technologies, targeting the development of next-generation autonomous and optionally piloted Commercial-Aircraft.

In a press release issued on September 23, 2026, the companies confirmed that Skyryse’s software-defined SkyOS will serve as the preferred aircraft operating system and flight control logic provider for joint projects. These projects will utilize BAE Systems Australia’s Vehicle Management System (VMS) to address growing demand across government, defense, and commercial sectors for modernized, highly automated fleets.

Integrating SkyOS and VMS architectures

The partnership brings together two distinct approaches to flight automation. BAE Systems Australia has spent 40 years developing sovereign autonomy technologies through its VMS architecture. By pairing this hardware and systems integration experience with Skyryse’s software platform, the companies intend to develop capabilities for both rotary and fixed-wing aircraft, including future clean-sheet designs.

Andrew Gresham, Managing Director of Defence Delivery for BAE Systems Australia, stated that the collaboration will allow the defense contractor to leverage its decades of VMS development to grow collective opportunities in the autonomous aircraft market.

“Together, Skyryse’s Software-defined SkyOS and BAE Systems Australia’s Vehicle Management System bring complementary capabilities that can help deliver the next generation of optionally piloted and autonomous aircraft for our customers in an increasingly competitive and evolving environment,” Gresham said.

Skyryse designed SkyOS to combine human-rated flight software with autonomous capabilities within a certifiable platform. Mark Groden, Founder and CEO of Skyryse, noted that software is becoming the defining technology in aviation as operators look to accelerate the adoption of autonomous capabilities.

Expanding autonomous capabilities in defense and commercial sectors

Both companies bring recent momentum in uncrewed and highly automated flight to the MoU. In April 2025, BAE Systems Australia entered into a 10-year agreement with Boeing Defence Australia to integrate its VMS into the MQ-28 Ghost Bat uncrewed aircraft. The Ghost Bat program represents a major push into collaborative combat aircraft for the defense sector.

Skyryse has similarly expanded its footprint in both defense and civil aviation. In June 2026, the company announced a Partnerships with Robinson Helicopter Company to integrate SkyOS into the Robinson R66, aiming to develop a Group 4 unmanned aircraft system (UAS) for defense applications. Earlier in the year, on March 5, 2026, Skyryse revealed plans to introduce a universal emergency autoland capability for Helicopters and airplanes directly within the SkyOS architecture.

The California firm is backed by significant capital to fund its certification efforts. In February 2026, Skyryse closed a Series C funding round that raised $300 million, bringing the company’s valuation to over $1.15 billion.

AirPro News analysis

We view this Memorandum of Understanding as a clear indicator of how traditional defense primes are adapting to the rapid pace of software development in the aviation sector. By partnering with a well-funded technology firm like Skyryse, BAE Systems Australia can potentially bypass the lengthy internal development cycles typically required for next-generation flight control logic. Skyryse gains a highly credible, established defense partner to help validate and scale its SkyOS platform beyond civil applications.

The explicit mention of “certifiable” software highlights the primary hurdle for autonomous aviation. The industry has proven that uncrewed flight is technically feasible, but certifying those systems for mixed airspace and human-rated operations remains the critical bottleneck. This partnership appears structured specifically to tackle that Certification challenge by combining BAE Systems Australia’s systems engineering rigor with Skyryse’s software architecture.

Sources: BAE Systems Australia

The U.S. Navy has successfully demonstrated software that translates human-generated mission plans directly into executable instructions for autonomous combat aircraft, a capability designed to reduce operator workload and accelerate the integration of uncrewed systems into fleet operations.

In a press release issued on September 22, 2026, the Navy announced the successful test of its Collaborative Autonomy Mission Planning (CAMP) system. The demonstration took place during the Gray Flag 2026 test event at the Point Mugu Sea Range in California, utilizing a single General Atomics Aeronautical Systems Inc. (GA-ASI) MQ-20 Avenger as a surrogate aircraft.

Bridging human planning and autonomous execution

The CAMP software allows mission planners to use the established Collaborative Mission Planning Continuum (CMPC) to direct autonomous platforms. This eliminates the requirement to manually translate operational plans into platform-specific code, a process that traditionally requires significant time and specialized technical knowledge.

Capt. Todd “Toby” Keith, Program Manager for the Navy’s Strike Planning & Execution Systems (PMX-281), stated that the demonstration connected current mission planning methods with future autonomous execution.

“CAMP is about making autonomy more usable by integrating into mission environments with both manned and unmanned platforms,” Keith said. “This demonstration showed how we can connect the way operators plan missions today in the CMPC with the way autonomous aircraft will execute those missions. That can reduce the burden on our operators, improve interoperability and help bring collaborative autonomy closer to operational use.”

Building on previous autonomous combat tests

The September 2026 demonstration builds upon the Navy’s Experimental Platform for Intelligent Combat (EPIC) initiative. In September 2025, the Navy partnered with Shield AI under the EPIC program to pilot a Kratos Defense & Security Solutions BQM-177A target drone in GPS-denied environments using the company’s Hivemind technology.

The U.S. military is actively expanding its deployment of uncrewed systems in combat scenarios. In July 2026, the U.S. 5th Fleet’s Task Force 59 utilized three Corsair unmanned surface vessels to strike a submarine and maintenance facility at the Bandar Abbas naval base in Iran. This marked the first time American forces employed sea drones in active combat operations.

The MQ-20 Avenger utilized in the Point Mugu test also serves as a testbed for the U.S. Air Force’s Collaborative Combat Aircraft (CCA) program. This dual usage highlights cross-service efforts to develop uncrewed platforms capable of operating alongside human-piloted fighters.

AirPro News analysis

The successful CAMP demonstration represents a critical step in solving one of the primary bottlenecks in autonomous warfare: the human-machine interface. While autonomous flight control has matured significantly, the administrative and technical burden of programming these aircraft for specific, dynamic missions has remained high. By allowing operators to use existing planning architectures like the CMPC, the Navy is lowering the barrier to entry for deploying uncrewed assets.

Questions remain regarding scalability and deployment timelines. The Navy has not publicly disclosed when the CAMP system will reach operational fleet units. The software has currently only been publicly tested on a single MQ-20 surrogate. We expect future testing will need to demonstrate the system’s ability to handle multiple, disparate autonomous platforms simultaneously before it can be considered ready for complex, multi-domain combat environments.

Sources: U.S. Navy

Hanwha Defense USA (HDUSA) will invest $2.2 billion over seven years to establish a munitions manufacturing campus at the U.S. Army Pine Bluff Arsenal in Arkansas, significantly expanding its domestic production footprint.

Announced on September 21, 2026, by the Arkansas Economic Development Commission (AEDC), the Hanwha Advanced Manufacturing Campus will produce 155mm propellant charges and base bleed units. The project is expected to create approximately 400 jobs in the Arkansas Delta region and marks a substantial increase from initial investment estimates.

Expanding the domestic munitions industrial base

The new facility aims to modernize the United States munitions supply chain by establishing advanced domestic manufacturing capabilities for critical artillery components. The U.S. Army awarded HDUSA an enhanced use lease solicitation for the campus in January 2026, culminating in the official opening of the company’s administrative headquarters at the site on September 21, 2026.

Michael Coulter, CEO of HDUSA, stated that the new office will oversee local operations and manage the construction of the advanced manufacturing campus.

“Hanwha remains committed to supporting the American defense industrial base by bringing our manufacturing strength to the U.S. and creating up to 400 jobs in Arkansas,” Coulter said in the press release.

The U.S. Army views the partnership as a method to optimize existing military installations. Jordan Gillis, Assistant Secretary of the Army for Installations, Energy and Environment, noted that the eventual lease will generate revenue for the military branch while enhancing the organic industrial base.

“By leasing underutilized land, the Army can reinvest the consideration into critical infrastructure to support quality of life of Soldiers, civilians, and their family members,” Gillis said.

State economic impact and project evolution

Arkansas state officials worked with Hanwha for 18 months to secure the location. The recruitment process included site visits and strategic meetings at both the Paris and Farnborough Air-Shows.

Arkansas Governor Sarah Huckabee Sanders described the selection of the Pine Bluff Arsenal as a major economic victory for the state, noting that the campus will bolster local economies and create hundreds of jobs in the Arkansas Delta.

The final scope of the project represents a significant expansion from early projections. Initial reports from January 2026 estimated the Pine Bluff Arsenal project would require a $1.3 billion investment and create about 200 jobs. The September 21, 2026, announcement nearly doubled those figures to a $2.2 billion capital investment and 400 jobs over the seven-year timeline.

Broader U.S. defense footprint

The Arkansas ammunition hub joins other recent U.S. expansion efforts by the Hanwha Aerospace subsidiary. The company is actively positioning itself as a primary supplier for U.S. ground forces.

On August 18, 2026, the U.S. Army awarded HDUSA a $100.3 million firm-fixed-price contract to develop and deliver six prototypes of the K9 Mobile Howitzer (K9MH) for the Mobile Tactical Cannon program. The contract includes a ceiling of $262.9 million.

To support the K9MH contract and its broader U.S. expansion, HDUSA established a Phase I integration and test facility in Opelika, Alabama. The company signed a three-year lease for the Alabama site earlier in 2026.

AirPro News analysis

We view Hanwha’s aggressive expansion into the U.S. defense market as a direct response to the U.S. Department of Defense (DoD) push to onshore critical munitions supply chains. The global demand for 155mm artillery components has surged, exposing vulnerabilities in domestic production capacity. By nearly doubling its initial investment estimate for the Arkansas facility, Hanwha is signaling strong confidence in sustained U.S. Army procurement and long-term demand for localized manufacturing. The concurrent development of the K9 Mobile Howitzer prototypes in Alabama further cements the South Korean defense giant’s strategy to embed itself deeply within the U.S. military-industrial base.

Sources: Arkansas Economic Development Commission